A Liquidation is a simple process, initiated by company directors, to close down an insolvent company.
Whilst the legal entity that is the company may be closed down, in certain circumstances it is possible to preserve the business and goodwill and the directors can often purchase its assets at fair value and start trading via a new company. There are restrictions regarding the use of the name and ensuring that a fair value is achieved for assets but all of these issues will be considered in the advice provided and subsequent strategy.
It is important for company directors to understand fully their duties and responsibilities and in particular how these are affected when the company becomes insolvent.
Facing financial difficulties can often be unknown territory for most directors and is a daunting process. In order to make the best possible decisions for the company and to protect their personal position it is therefore crucial professional advice is sought at the earliest opportunity.
Taking control at an early stage before creditors are allowed to take further action is often the key to an orderly wind down and achieving the best possible outcome. CBA are here to support and guide directors in these uncertain times and provide a full range of solutions tailored to the individual company needs. We can guide you through the process from start to finish and where company assets are insufficient to meet any costs we are always able to offer cost effective and flexible payment options where appropriate.